Goldman Sachs: Maintain a Buy rating on HSBC Holdings with a target price of HK$98.

Goldman Sachs released a report stating that HSBC Holdings' basic pre-tax profit for the first quarter was $9.8 billion, exceeding the bank's expectations by 13%, mainly driven by foreign exchange and wealth management business income. The group plans to launch a share buyback of up to $3 billion and distribute a first-time dividend of $0.1 per share, both of which are in line with expectations. HSBC Holdings stated that it continues to target an average tangible return on equity of around 15% per year for the three-year period from 2025 to 2027. According to the latest model calculation, the group continues to anticipate net interest income from banking operations to reach approximately $42 billion in 2025. The group stated that this year's expected credit loss provision will be maintained between 30-40 basis points of the average loan amount. Goldman Sachs stated that considering the above factors, it expects HSBC Holdings' first-quarter performance to have a mild positive impact on the stock price, therefore maintaining a "buy" rating with a 12-month target price of $98 Hong Kong dollars.